We study two-stage contests in which the designer can award a prize for winning in each stage, and also a prize for winning in both stages. For this purpose, we analyze the optimal allocation of prizes for a designer who wishes to maximize the players’ total effort when the matches in each stage are modeled as Tullock contests. It is demonstrated that the prize for winning in both stages should be allocated in the two-stage Tullock contest with two players, but not when there are more than two players.
- Best-of-two contests
- Tullock contests
- Two-stage contests
All Science Journal Classification (ASJC) codes
- Economics and Econometrics